Tournament Hills Property Owners Pay Pardee Homes $9 Million

City of Beaumont/Pardee Homes/Tournament Hills Area 17C

The City of Beaumont and Pardee Homes started acquiring Mello Roos Bonds for Tournament Hills Area 17 in 2003. There appears to be approximately 2,000 houses being constructed. A CEQA EIR has never been filed.

Area 17B:

In 2011 the City of Beaumont acquired a Mello Roos Bond for $12,145,000 of which $602,469.23 was remaining in the Bond Fund Accounts. The entire amount was transferred to the City of Beaumont on February 6, 2018. The City then transferred the entire amount to Pardee Homes on February 9, 2018.

Pardee Homes claims the money is a reimbursement for constructing the Oak Valley Sewer Lift Station. There were no Public Bids submitted as required by California Public Contract Code or Payroll Records submitted as required by California Labor Code.

An interoffice memo was sent from Carolina Fernandez to Beaumont’s former Public Works Director Amer Jakher stating that she verified the backup documentation, but the City could not provide backup documentation.

Area 17C:

On June 6, 2018, the City of Beaumont acquired a $8,730,000 Mello Roos Bond levied against Tournament Hills Area 17C of which $8,325,282.90 was allocated to the 'Acquisition and Construction Fund’.

On June 28, 2018, the entire amount of $8,325,282.90 was transferred to the City of Beaumont. On July 2, 2018, the City transferred the entire $8.3 Million to Pardee Homes.

On June 22, 2018, Beaumont’s Financial Advisor, Mike Busch of Urban Futures, sent a letter to Assistant Manager Kristine Day stating that he verified the Invoices.

There were no Public Bids submitted as required by California Public Contract Code or Payroll Records submitted as required by California Labor Code. Mike Busch and Urban Futures are Associates of the former City Manager Alan Kapancias and profits financially from every Bond the City of Beaumont acquires.